A Study on Economic Profitability of Red Chittagong Cattle Farming Practices at Some Selected Areas in Chittagong District
A production report submitted by
Examination Roll No: 2003/16 Reg. no: 112
Internship ID: C-14 Session: 2002-2003
This production report is submitted for Partial fulfillment of the Degree of Doctor of Veterinary Medicine (D.V.M).
Chittagong Veterinary And Animal Sciences University.
Khulshi, Chittagong-4202
April, 2008
A Study on Economic Profitability of Red Chittagong Cattle Farming Practices at Some Selected Areas in Chittagong District
A production report submitted as per approved style and contents
April, 2009
………..
Signature of Supervisor Md. A. Halim
Associate Professor & Head Department of Basic Science Chittagong Veterinary and Animal Sciences University.
………..
Signature of Author
Name: Md.Anwarul Haque Roll No: 2003/16
Reg. No: 112
Intern ID: C-14
Session: 2002/2003
CONTENTS
SL. NO. Name of the Contents Page No.
01 ABSTRACT i
02 ACKNOWLEDGEMENT ii
03 ABBREVIATION iii
04 INTRODUCTION 01- 02
05 REVIEW OF LITERATURE 03
06 METHODOLOGY OF THE STUDY 04
07 RESULTS AND DISCUSSIONS 05-10
08 CONCLUSION AND RECOMMENDATIONS 11
09 REFERENCES 12
LIST OF TABLES AND GRAPHS
SL.NO. NAME PAGE NO.
Table-01 Distribution and Socio-economic profiles of RCC farm families
05
Table-02 Per year per cow cost of rearing RCC cows
07
Table-03 Per cow per lactation returns of rearing of RCC cows09
Table-04 Reasons for preference of rearing RCC farmingpractices
10
Graph-01 Land ownership of the farm owner06
Graph-02 Yearly income of the farm owner
06
Graph-03 Rearing cost per year per cow
08
ABBREVIATIONS
Abbreviations
Elaborations
BBS Bangladesh Bureau of Statistics BCR Benefit Cost RatioBLRI Bangladesh Livestock Research Institute DLS Directorate of Livestock Services
FY Fiscal Year
GDP Gross Domestic Production HYV High Yielding Variety
NBG North Bengal Grey
NGO Non Government Organization RCC Red Chittagong Cattle
US United States
Study on Economic Profitability of Red Chittagong Cattle Farming Practices at Some Selected Areas in Chittagong District
ABSTRACT
The study was carried out in 2 Upazillas under Chittagong district with a view to analyze the present socio-economic and profitability status of RCC farming practices on 40 RCC rearers were selected covering the Chandanaish and Satknia Upazila randomly. The study showed that, about 38.00 percent of RCC farm owners were landless, 32.00 percent were small and marginal farmers, 16.00 percent were medium and 14.00 percent were large farmers according to their landholding sizes. The average rearing cost of RCC per cow per year was found on the basis of cash cost, non- cash cost and full cost basis at Tk. 16404.16 Tk. 16400.66, and Tk. 32804.82, respectively. The study also found that, average daily milk yield, lactation yield and lactation length of RCC were found 2.65 liters, 565.21 liters and 213.29 days, respectively. The average gross- return per year per cow of RCC was found at Tk. 24590.00. The average gross returns per lactation per cow of RCC rearing over cash cost and full cost basis were found at Tk 8186.256 and Tk. - 8238.88, respectively. The BCR on the basis of cash cost and full costs per year per cow were found 1.49 and 0.74, respectively. The study also revealed that, the rural farmers prefer RCC farming than other local breeds due high conception rate, each year calving, disease resistance, high milk fat per cent, cost effective farming, low calf mortality, high demand of beef and looking very nice etc. Finally, the study made some recommendations for improving RCC dairy farming in the study areas.
ACKNOLEDGEMENT
All praises are due to the Almighty ALLAH, whose blessings have enabled the author to complete this work.
The author expresses his whole hearted senses of gratification and sincere appreciation to his respected teacher and supervisor Md. A. Halim, associate Professor & Head, Department of Basic sciences, Chittagong Veterinary and Animal Sciences University whose ingenious and scholastic advice, judicious recommendations constructive criticisms, continuous encouragement and kind assistance have guided the author from the beginning of Intern production report to the complementation of this research.
The author would like express his bondless sincere and heartfelt gratitude to Md. Rashidul Hasan and Mrs. Meherunnesha Chowdhury Sumi, Lecturer, Department of Basic sciences, Chittagong Veterinary and Animal Sciences University, Chittagong for his advice and suggestions in correction with this research work.
The author expresses his heartfelt thanks and gratitude to all friends and room mates for their kind cooperation to successfully complete the study.
The authors remember and extend his indebt ness to the farmers in the study area who helped directly during data collection period of the study.
The author
ABBREVIATIONS
Abbreviations
Elaborations
BBS Bangladesh Bureau of Statistics BCR Benefit Cost RatioBLRI Bangladesh Livestock Research Institute DLS Directorate of Livestock Services
FY Fiscal Year
GDP Gross Domestic Product HYV High Yielding Variety
NBG North Bengal Grey
NGO Non Government Organization RCC Red Chittagong Cattle
US United States
ACKNOLEDGEMENT
All praises are due to the Almighty ALLAH, whose blessings have enabled the author to complete this work.
The author expresses his whole hearted senses of gratification and sincere appreciation to his respected teacher and supervisor Md. A. Halim, associate Professor & Head, Department of Basic sciences, Chittagong Veterinary and Animal Sciences University whose ingenious and scholastic advice, judicious recommendations constructive criticisms, continuous encouragement and kind assistance have guided the author from the beginning of Intern production report to the complementation of this research.
The author would like express his bondless sincere and heartfelt gratitude to Md. Rashidul Hasan and Mrs. Meherunnesha Chowdhury Sumi, Lecturer, Department of Basic sciences, Chittagong Veterinary and Animal Sciences University, Chittagong for his advice and suggestions in correction with this research work.
The author expresses his heartfelt thanks and gratitude to all friends and room mates for their kind cooperation to successfully complete the study.
The authors remember and extend his indebtness to the farmers in the study area who helped directly during data collection period of the study.
The author
CHAPTER-I
INTRODUCTION
Livestock plays an important role on the agricultural economy of Bangladesh. The non-crop agriculture sector has registered significantly higher growth rate over the last few years. The crop sector showed an annual growth rate of 1.2% while fisheries, livestock and forestry sub- sectors experienced 5.3, 5.6 and 4.0% growth rates respectively (Mondal, 1999). The share of the livestock sub-sector in GDP at constant prices was 2.92 percent, which was 17.2 percent of agriculture and forestry sector in FY 2005-06. The share of this sector is projected at 2.90 percent of GDP, which would be 17.7 percent of agriculture and forestry sector in FY 2006-07.
Among the sub-sectors of the broad agriculture sector, the growth of the livestock sub-sector is the highest. Bangladesh earn 257 million US dollar in 2006 (B.B.S.,2006).In FY 2005-06, the growth of this sub-sector was 6.15 percent, which is projected at 5.85 percent in FY 2006-07.
Though the share of the live-stock sub-sector in GDP is small, but it has immense contribution to meeting the daily protein requirements, cultivation, production and export of leather and leather goods. According to the estimates by the Ministry of Fisheries and Livestock the number of the livestock and poultry raised to 4 crore 75 lakh and 24 crore 60 lakh respectively in 2006- 07. The production of milk, meat (beef, mutton and chicken) and egg have been on the increase over the past several years. The production of milk and meat (beef, mutton and chicken) were 2.27 and 1.13 million ton in the year 2005-06. In the year 2006-07, production of milk and meat were 2.28 and 1.03 million ton respectively (BEW-2007). RCC rearing was a profitable farming in Chittagong district. Some researches were undertaken in the previous year about RCC rearing and few are present here. In terms of high density of livestock, the country suffers from an acute shortage of livestock products. The Government of Bangladesh therefore applied special emphasis on development of livestock sectors. In fact, about 90% of the cattle population in Bangladesh in zebu type termed as low producing indigenous cattle. Among them some improved varieties such as Red Chittagong cattle (RCC), Pabna cattle, Munsiganj cattle, Manikganj cattle and North Bengal Grey (NBG) cattle are potential producers of milk, meat and are found in different localities of the country. The Red Chittagong Cattle (RCC) is one of the improved and promising domestic animal genetic resource found all over the Chittagong district at varying concentrations. The Red Chittagong Cattle have distinct phenotypic characteristics.
They are small in size with red coat color, distinct reddish color of muzzle, horn, hoof, ears, eyeball, eyebrow, vulva and tail switch (Hossain, 2005). The Red Chittagong are well adopted to adverse climatic condition and developed in disease resistance power, service per conception, lactation length, one calf per year production etc ( Akhter et al.,2002). Others breed is well
developed to meat and milk production (Deb et al., 2005). Most of the available studies of RCC rearing related to productive and reproductive performance based, the socio-economics of RCC farming practices are limited. Thus, the present study is the modest effort whether the RCC farming practices has any positive impact for improving livelihood for rural poor in Bangladesh.
The specific objectives of the study are as follows: i) To describe the socio-economic profiles of the RCC farm owners and their families, ii) To estimate per lactation cost and return of rearing of RCC cow; iii) To identify some reasons for preference of rearing RCC cows and give suggestions for improving and expansion of rearing Red Chittagong Cattle through out the country like as Chittagong areas in Bangladesh.
CHAPTER –II
REVIEW OF LITERATURE
Bangladesh livestock Research Institute (BLRI) and Animal Science Department conducted research on this field. The average milk production of Red Chittagong Cattle (RCC) cows was found at 2.0 liters in farm condition under research stations and 1.8 liters in rural condition (Khan et al., 2000). The daily milk production of Red Chittagong cows was 2.50 liters at rural condition and 2.56 liters at farm condition (Haque et al., 1998). The average milk production of RCC cow was found at 2.75 liters, RCC cross 4.32 liters at field level. In case of local breed cows it was found at 1.84 liters (Akhter et al., 2002).
The lactation length of Red Chittagong Cattle (RCC) cows at farm condition varied from 214.70±21.68 to 261.08±14.51 days (Habib et al., 2003 and Khan et al., 2000). Mostari et al (2005) observed that lactation length of RCC at farm condition was 230.63±23.88 days. On the other hand lactation length of Non-descriptive and Pabna cattle varied from 221.30±21.90 to 241.18±10.53 (Bhuiyan and Sultana, 1994; Hossain and Routledge, 1982) and 198.92±11.52 to 258.59±48.72 (Udo et al., 1990; Hossain and Routledge, 1982; Khan and Khatun, 1998) in that order.
The lactation milk yield of Red Chittagong Cattle (RCC) varied from 650 to 729.86 litres (Habib et al., 2003 and Hasnath, 1974) against 213.0±88.0 to 540.70 litres of Non-descript (Bhuiyan and Faruque, 1993; Hossain and Routledge, 1982; Khan et al., 2001) and that of 803.0±290 to 1053.58±380.56 liters of Pabna cattle (Udo et al., 1990; Hossain and Routledge, 1982).
The average per cow per lactation per year gross cost and gross return were found at Tk.33044.03 and Tk. 25390.41 as well as the BCR over cash and full cost basis was found 1.47 and 0.77, respectively at village condition (Halim et al. 2009).
CHAPTER-III
METHODOLOGY OF THE STUDY
The socio economic research study was conducted on the basis of field data which was collected from individual RCC rearering household. To conduct agricultural economic research various methods are applied to collect reliable data. The choice of methods of data collection depends on availability and location of farm families and transport facilities.
Data Sources and location:
Two upazila of Chittagong district viz, Chandanaish and satkania selected randomly because density of Red Chittagong Cattle in that particular areas were high. Both convenient and random sampling techniques were applied for sample selection for conducting the field survey. The survey was conducted taking 20 RCC farm owners from each selected Upazilla. Thus, a total of 40 sample farmers were surveyed during October 2008 by direct face-to-face interview in a single visit using a simple questionnaire to achieve the objectives of the study during of days at N.G.O placement.
Data Analytical techniques:
All the collected data were processed and analysed in accordance with the objectives of the study. Collected data were organized, structured and analyzed by using both tabular and graphical methods as well as using simple descriptive statistical tools and techniques by using Microsoft Excel and SPSS program and farm business analytical techniques such as cost returns and profitability.
Weaknesses of the study: The major weaknesses of the study were shortage of time and reliable field data because the rural households not maintained their farm record related to costs and returns.
CHAPTER IV
RESULTS AND DISCUSSIONS
1.0 Socio Economic Profiles of RCC Rearers: 1.1 Age:
Members of the whole family were classified into 4 age groups of 0-10 years, 11-30 years, 31- 50 years and 50 years and above. Considering all the age groups in Table-1 showed that, maximum male and female members were 11-30 years age groups and the lowest number of farm family members lies in 50 and above year’s age group.
Table-1: Distribution and Socio Economic Profiles of RCC farm Families:
General Characteristics Categories Number Percent
Age 0-10 years Male 9 5.59
Female 10 6.21
11-30 years Male 36 22.37
Female 35 21.73
31-50 years Male 29 18.01
Female 23 14.29
50 and above Male 11 6.83
Female 8 4.97
Total 161 100.00
Literacy level of farm
family members Illiterate 13 8.07
Primary 50 31.06
Secondary 65 40.37
Higher Secondary 31 19.25
Honors and Above 2 1.24
Total 161 100.00
Occupation of farm family members
RCC farming with crop
agriculture 23 33.33
RCC farming with service 20 28.99
RCC farming with business 16 23.19
RCC farming and others 10 14.49
Total 69 100.00
Land Ownership of Farm owners
Land less farmers (0- 0.50 acres) 15 37.5 Small and marginal (0.51- 1.50
acres) 12 30.00
Medium sized (1.51-2.5acres) 7 17.5
Large farmers (above 2.50 acres) 6 15.00
Total 40 100.00
Yearly Income Level of Farm owners
Below Tk. 50,000 8 20
Tk. 50,001- Tk.1,00000 10 25.00
Tk. 1,00001- Tk.1,50000 10 25.00
Above Tk. 150,000 12 30.00
Total 40 100.00
Source: Field Survey, 2008
Graph 2: Land ownership of farm owner Graph 3: Yearly income of farm owner 1.2: Literacy level
of farm family members
:Table-1 also showed the literacy level of the family members of the RCC farm owners. Literacy level were classified into Illiterate, Primary, Secondary, Higher secondary, Honors and above respectively. Maximum
40.37
percent of the family member lies in secondary level and lowest1.24
percent of the family member lies in Honors and above level.1.3: Occupation
of farm family members
:Occupation of the RCC farm family members was classified into five categories, which was also showed in the Table-1. It was showed that, highest
33.33
percent farmers involved in RCC farming with crop agriculture and lowest14.49
percent farmers involved in RCC farming and others actives.Land ownership:
According to the size of land holdings, the RCC farm owners were classified into 4 groups.Table-1 shows that highest 37.5 percent of the farm owners were landless and the lowest 15.00 % farm owners were large farm sized.
Yearly income level of the farm owner:
Yearly income level of RCC farm owner’s is shown in the Table-1. It revealed that, maximum 30 percent of the farmer’s income Above Tk.150,000 and the lowest 20 percent of the farmer’s income Below TK. 50,000.
2.0 Cost of Rearing RCC Cows:
The cost of rearing RCC cows were classified as cash cost where direct cash expenditure incurred were calculated from daily records and non- cash costs were fixed and family supplied input costs. The cost and return were estimated from the collected data from 2 Upazilla under Chittagong district. Table 2 shows that, yearly estimated total cost of RCC farm owners. Total estimated full cost of rearing RCC per year at Chandanaish and Satkania at Tk. 30669.77 and Tk. 34939.84, respectively which indicate that costs of rearing RCC at Satkania was higher than Chandanaish because of lack of fodders and high prices of concentrate feeds. Table-2 also indicate that the average cash cost was the major expenditure incurred by concentrate feed which was 38.40 percent and out of non-cash cost the maximum cost incurred by labour cost which was 14.80 percent of total cost.
Table-2: Per Year per Cow Cost of Rearing RCC Cows:
Particulars
Upazilla wise per year per cow cost Chandanaish
(n=20)
Satkania (n=20)
Average (N=40)
In taka % In taka % In taka %
A. Cash Cost:
Straw 3143.4 10.25 3655.12 10.46 3399.26 10.36
Concentrate 10953.2 35.71 11720.35 33.54 11336.78 34.56
Vet. Care 775.73 2.52 860 2.46 817.87 2.59
A.I Cost 180.00 0.59 230 0.66 205 0.634
Others 530.50 1.72 760 2.23 645.25 1.97
Total Cash Cost
15582.83 50.79 17225 .47 49.35 16404.16
50.11 B. Non-Cash cost:
Straw 3850.60 12.55 4673.05 13.37 4261.825 12.99
Green Grass 2715.6 8.85 3180.52 9.10 2948.06 8.99
Labor cost 7450.54 24.29 8680.40 24.84 8065.47 24.43
Depreciation on
housing 960.20 3.13 1080.40 3.09 1020.3 3.00
Dairy equipment
cost 110 0.39 100 0.29 105 0.32
Total (Non Cash
Cost) 15086.94 49.21 17714.37 50.65 16400.66 49.89
Full cost (A+B) 30669.77 100.00 34939.84 100.00 32804.82 100.00 Source: Field survey, 2008
Graph 1: Rearing cost per year per cow.
3.0 Return of Rearing RCC Cows:
The cost and return were estimated from the collected data from 2 Upazilla under Chittagong district. Table – 3 revealed that, yearly estimated total return of the RCC Cows of the farm owners. Total estimated gross return of rearing RCC cow per year in, Chandanaish and Satkania were found Tk. 23150.00 and Tk. 26030.00, respectively and average were Tk. 24590.00, which indicate per year per lactation per cow returns was higher at Satkania because of higher milk yield and milk prices at Satkania. It was evident from the table that average major portion of the income come from milk which was 71.16 percent and lowest income come from cow dung which was 8.51 percent of total return. Estimated BCR on the basis of cash cost for Chandanaish and Satkania were found 1.48 and 1.51. The average BCR over full cost basis were obtained 0.74. We calculated family labour and green grass cost at full cost, though the farmers did not give any cost for these items but we estimated full cost taking these two items opportunities cost as per market price.
Table-3: Per cow per lactation Returns of rearing of RCC Cows:
Particulars of Return
Upazilla wise Returns per cow per lactation
Chandanaish Satkania In Total
In taka % In taka % In taka %
Income from
milk 16820.00 72.66 18180.00 69.84 17500.00 71.16
Income from
calf 4200.00 18.14 5800.00 22.28 5000.00 20.33
Income from
cow dung. 2130.00 9.20 2050.00 7.87 2090.00 8.51
Gross Return 23150.00 100.00 26030.00 100.00 24590.00 100.00 Return over cash
cost: 7568.00 - 8804.53 - 8186.256 -
Return over full
cost: -7519.77 - -8909.84 - -8238.88 -
BCR
(Cash cost basis) 1.48 - 1.51 - 1.49 -
BCR
(Full cost basis) 0.75 - 0.74 - 0.74 -
Source: Field survey, 2008
4.0: Reasons for preference of rearing RCC farming practices:
The Red Chittagong cattle (RCC) are one of the improved and promising varieties of domestic animal genetic resource found in greater Chittagong district of Bangladesh.
It is very nice looking variety of cattle of red body color which is known as Chittagong red variety, cows of this variety are potentially good yielder. The most important factor that the animals are highly resistant to diseases, especially, under rural production systems require lower input support than others and produce milk and beef of high quality.
The farmers in the study area have been rearing RCC since many years. Data in the table-4 showed that the highest (95%) farmers preferring of rearing RCC for high fat percentage of milk. The next important reasons for preferring RCC are calving every year, high milk price, looking very nice, high market price of cattle and less disease incidence. The farmer also identify some reasons for rearing RCC are as follows:
delicious milk, high adoption of local environment, low death rate of calf, high lactation period, cost saving farming and high conception rate.
Table-4: Reasons for Preference of Rearing RCC Farming Practices:
Particulars of Preference Number of farmers responds
( N =40)
Percent
Looking very nice 37 92.50
Less Disease incidence 36 90.00
Cost saving farming 30 75.00
Delicious of Milk 32 80.00
High fat % of milk 38 95.00
Low death rate of calf 32 80.00
Calving every year 37 92.50
High lactation period 30 75.00
High conception rate 28 70.00
High Market Price of Cattle 36 90.00
High Milk Price 37 92.50
High adoption on local environment 34 85.00
High Demand Beef cattle 30 75.00
Source: Field Survey, 2008
CHAPTER- V
CONCLUSION AND RECOMMENDATIONS
The study revealed that BCR on the basis of cash cost in Chandanaish and satkania were 1.48 and 1.51 ,respectively, which shows that the RCC farming is profitable. On the other hand, BCR on the basis of full cost at Chandanaish and Satkania were 0.75 and 0.74 ,respectively, BCR in full cost basis are lower than 1, which indicate that the RCC farming is not profitable but traditionally this is going on as a subsistence farming by using low cost easily available inputs of farm families. Incase of full cost as we included cost of family labour and family supplied green fodder as per local market price, so it comes as negative impact on return. If we exclude the costs of these two items then we may conclude the RCC farming will be a profitable enterprise and subsistence farm business at rural condition under Chittagong District.
Some recommendations were given for better rearing of RCC:
The Directorate of Livestock Services should expand their veterinary services and other facilities. Veterinary treatment facilities should be extended up to union level and more veterinarians should be placed in this Upazilla.
The shortage of feeds and fodder may partially overcome by introducing high yielding variety fodder cultivation. The government and non-government organizations should play a vital role in disseminating HYV fodder cultivation.
The training programmed concerning livestock management, health care and sanitation, artificial insemination and marketing techniques etc. should be initiated by the Directorate of Livestock Services in collaboration with the non- government organizations.
The government should extend credit facilities to the farm owners at the low interest rate.
REFERENCES
Akhter, S., Haque, K.S., Jalil, M.A. and Miah, G., 2002. Characterization , Selection and Conservation of Red Chittagong Cattle, Annual Research Review Workshop on 25 to 26th June, held in Bangladesh Livestock Reseach Institute, Savar, Dhaka.
Alam, J., Akteruzzaman, M., Rahman, A. and Ahmed, Z., 1994. Comparative performance of local and cross-bred cows in Bangladesh. Indian J. Dairy Science. 47 (2): 112-117.
Bangladesh Bureau of Statistics (BBS), 2006. Statistical Yearbook of Bangladesh.
Dhaka: Statistics division, Ministry of Planning , Government of the peoples’
Republic of Bangladesh.
Bangladesh Economic Review (BER), 2007. Economic Adviser’s Wing, Finance Division, Ministry of Finance, Bangladesh.p.92-94
Deb, G.K., 2005. Genetic study of birth weight of Pabna cattle and BULP base Sire evaluation. Annual Research review workshop on 25 to 26th April, held in Bangladesh Livestock Research Institute, Savar, Dhaka.
.Hossain, M.M., 2005. Characterization and distribution pattern of Red Chittagong cattle of Bangladesh. MS Thesis. Department of Animal Breeding and Genetics .Bangladesh Agricultural University, Mymensingh.
Mondal, M.A.S., 1999. “NGO and private sector participation: How far does it go to Help Transformation of Bangladesh Agriculture?” Paper submitted in the Eleventh National conference of Bangladesh, Agriculture economic Association. Farmgate, Dhaka.
Reza, A., 1999. Livestock Extension activities in Bangladesh, Akhteruzzaman, M., Hoque, M.S. and Rahman, M.M. (Ed.), Proc. 6th National conference and Seminar, Bangladesh Animal Husbandry Association, Dhaka.
